The Current Investment Climate in Andorra: Project with MIT

As an Independent principality, Andorra has around 77,000 people and covers an area of about 181 sq. miles. It is not a member of the EU, but it has been allowed to use the euro as its main currency due to its monetary agreement with the EU.

Being a popular tourist destination, it is visited by more than eight million people each year. This is also a result of the summer climate, duty-free shopping, and winter sports.

It is also very wealthy as an international commercial center due to its low taxes and integrated banking rules.

Now, as part of its efforts to modernize the economy, it has opened up to foreign investments, who can engage in different reforms such as tax initiatives aimed towards supporting Andorra's broader infrastructure.

In this regard, they have fostered quite a big project with the Massachusetts Institute of Technology to innovate new projects and develop big data. This has employed Andorra’s unique economy into a test market.

The Economy in Andorra has also undergone a diversification process that’s centered largely towards trade, tourism, finance, and property.

To provide these incentives for diversification and growth, the government started sweeping economic reforms.

The parliament of Andorra also approved direct taxes as a form of tax on economic activities, corporate tax, and tax on the income of non-residents, savings on taxation, and capital gains from tax. These are regulations aimed at establishing a more modern, internationally comparable framework and transparency.

Additionally, previously all non-citizens who had less than 20 years of residency in Andorra could own only a 33% stake in a company. Still, now they are allowed to own up to 100% of any trading enterprise, although the government has to approve this.

The approval takes about a month. It can also be rejected if the proposal was threatening to a public order, the environment, or other general interests in the principality.

Currently, Andorra has a per capita income above the European average and above its neighbors like France and Spain.

This country has developed an incredibly sophisticated infrastructure with a one-of-a-kind fiber-optic network where the entire country receives universal access to the internet.

The New Andorran Data Protection Law

Andorra currently holds an adequacy decision. This is from the European Commission, and in most respects, it is a country considered to have a modern data framework. Nevertheless, reform is in the cards so it can become a fully protected framework.

This will help align it to the national law together with that of the EU.

The current data protection in Andorra's Principality is regulated by the 15/2003 Act of December 18th of the Personal Data Protection.

This is a Decree that approves the regulation of the Andorran Authority of Data Protection. It states that the right to data protection has been recognized and protected in Andorra since 1993. On this basis, it guarantees and recognizes the right to intimacy and the secrecy of communication.

Here are the guidelines on data privacy;

-Personal data refers to any information concerning identifiable individuals.

-Sensitive data refers to any information that concerns political or religious conviction and belongs to trade unions, religious organizations, sex life, or health.

-A data controller is a private or public person that’s legal and decided on the purpose of the data and the data processing devices.

-A data subject is a natural person whose data information has been processed.

-A recipient is a legal person, either private or public, whose data is disclosed.

-Private data file – the data controller is a legal or natural person, or it could be a public company subject to personal law.

-A public data file refers to a personal data file that is part of the public administration.

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New Rules on Registration and Notification for Private Companies

As per the law in Article 27, legal or natural persons or private companies responsible for data processing are obliged to record their personal data files in their control under the public register supervised by the APDA.

Additionally, based on this article, the scope of the inscription has to include that the domicile and data controller is for data processing.

This obligation is expected to change due to the GDPR to mandate the self-responsibility of the data controller in keeping written records of personal data processing. They should also make it available to the APDA when needed.

Latest COVID-19 Rules Regarding Travelling to Andorra

Regarding traveling rules, the Andorran authorities have set and enforced specific entry rules for the country in terms of the territory you are traveling to.

You need first to check your passport provider or the travel company to ensure that you meet the travel requirements.

Currently, all travel to Andorra will require transit through Spain or France. Therefore, you should check on the entry requirements in these countries related to their travel advice and guide.

The Andorran Government has advised people coming back to Andorra from England to follow all of the COVID related measures they have outlined below until further notice;

If you are a visitor with kids over six years of age and planning on staying in Andorra for at least three nights or more, you should have the following certificates

-A certificate of vaccination that confirms you have already been given the COVID-19 vaccination dose in full.

-A certificate of diagnosis showing a negative result for the SARS-CoV-2 test should have been done in the last 72 hours.

-A recovery certificate that certifies you have fully recovered from COVID-19. This one should be original and written in either Spanish, Catalan, English, or French, and it should be in the original printed format. You must show this when checking in to the hotel for accommodation.

If you are a resident of Spain, France, or Portugal, or a resident of the “green countries,” you are exempt from presenting the above certificates as per the recommendations of 2020/1475.

The authorities advise anyone arriving in Andorra to take extreme prevention measures such as sanitization, personal distance, and wearing a face mask. They should also minimize social interactions.

Anyone arriving from the UK has to give their personal details such as your name, passport number, census number, city, telephone number, region of origin in the UK, date of arrival into Andorra, and the date they intend to return to the UK.

This information covers the most common travel types and reflects the UK government’s current rules and understanding.

The authorities in Andorra will be responsible for enforcing and setting the rules of entry. If you are unclear on access, you need to contact the embassy, consulate, or high commission.

You will be required to confirm with the travel company you are using or the transport provider to ensure that your passport and other travel documents are as per the requirements.

All traveling to Andorra, however, requires a transit visa through neighboring Spain or France, and you need to check on these country’s requirements, as we have mentioned above. British nationals do not need a visa to visit Andorra.